What Happen to Your Company Without the CRM Restructure?

By KH Lim et al.

The purpose of a customer relationship management (CRM) approach within a company is to develop better customer experiences and satisfaction while improving company productivity and profits. This is crucial because loyal customers can affect a company’s revenue, and CRM is the precise strategy that will help with increasing business profits. 

1. You will never know your potential customers.

It is harder for a company to increase its revenue and profits without information on its customers. Moreover, a retention programme cannot be executed without CRM, and potential customers may go to another company as opposed to being retained. Research shows that it costs a company seven times more to recruit a new customer than to retain an existing customer. 

Picture this: A customer walks into your shop, Shop A, and to make a purchase. It seems that from him alone, you can get a considerable amount of sales. You give him a receipt for his purchase, and he leaves your shop. Next month, he visits one of your other shops, let’s say Shop B, and again he spends quite a lot of money. Unfortunately, your workers in Shop B do not recognise him. From his visit to your Shop A, we know that this man is a potential asset to your company’s revenue and that he should be turned into a loyal customer. However, without a CRM platform, there is nothing much you can do to capture his data, purchase behaviour, and pattern.

2. Unorganised customer data

Customer data is vital for every retailer. Without the existence of CRM, customer data can still be collected although they are collected manually and stored in hardcopy files. To make things worse, the marketing team and sales team would not able to identify their target customers using this type of data.

Due to unorganised data, the customer service team will find it difficult to solve the customers’ problems and it will take a longer time too. Dissatisfied customers will become even more upset and will not recommend Senheng to anyone else. In other words, CRM and customer information can help your team serve customers faster and with more precision as retargeting. 

3. Time spent doing manual updates

As a business starts to grow, it will become more well-known among customers, and more customers will visit your outlets. To increase your customer database, all customer data must be compiled and stored for data analysis, insights, and improvements. However, without CRM, time spent on manual updates of customer data will increase. Moreover, manual data input is bound to have human errors, which can misdirect potential promotional campaigns. It is more costly to lose a customer than to retain one, hence the importance of CRM.  

It is more costly to lose a customer than to retain one, hence the importance of CRM.

4. Paperless initiatives can never be achieved 

Companies like Senheng always put customer satisfaction first. Rewards, such as vouchers, are distributed to Senheng customers to show appreciation for their support for Senheng. All vouchers are typically in paper form since no platform can store e-vouchers. There is a high cost involved in printing and distributing the vouchers to the members. Besides rewards, when a customer makes a purchase, all purchase receipts are still in paper form. Using paper is not a great idea as many issues mat occur, such as vouchers and receipts going missing. If such a problem happens regularly, it will hamper the processes involving voucher redemptions or warranty claims. 

Digital Journey: The GAME, the RULE, the way forward for businesses in digital economy: https://kanyinbooks.com/collections/english-book/products/digital-journey

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Create your website with WordPress.com
Get started
%d bloggers like this: